Risk of Valuation Losses Due to Prolonged Recovery of Unlisted Company Investments and Deterioration in Enterprise Value
First written in FY2020. 1 of 2 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2018: 3 of 8 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Because it normally takes a long time from investment until an investee's stock market listing or sale to a third party, there is a risk that enterprise value may deteriorate from initial expectations. In addition, if an investee's results do not develop as expected, the recognition of valuation losses on securities held for operating investment purposes could affect our group's results.」
The company continues to disclose the risks of prolonged recovery of investments in unlisted companies, deterioration in enterprise value and valuation losses. - FY2020First statedAnnual report
「Because unlisted companies and similar businesses are in the growth stage, they face risk factors including unstable earnings and financial foundations and limited management resources. Accordingly, we limit investment amounts to a certain level. However, it normally takes a long time from investment until an investee's stock market listing or sale to a third party, creating a risk that enterprise value may deteriorate from initial expectations. In addition, if an investee's results do not develop as expected, the recognition of valuation losses on securities held for operating investment purposes could affect our group's results.」
For the private equity business, which has entered full-scale operation, the company newly disclosed risks related to the financial foundations of unlisted companies, prolonged investment recoveries and potential valuation losses.